Together with APG Asset Management N.V. and global real estate investor, Ivanhoé Cambridge, Scape Australia says the new joint venture will strategically focus on urban locations close to “world-class universities” in the country.

The partners said that the buildings will also incorporate the next level of design from Scape’s in-house development, design and operational teams.

It is the third venture between the three partners after deals in 2015 and 2018.

Scape Australia co-founder, Stephen Gaitanos, said the partnership with the “high calibre” global investors “comes at a very exciting time with our current portfolio at full occupancy”.

“[There is] a clear need for more well designed and located rental accommodation in Australia,” he added.

In the decade since being established in 2014, Scape Australia has grown to become the largest residential-for-rent owner and operator in the country, managing 36 operational assets (17,200 apartments) with 10 purpose-built student housing and urban living assets under development.

It has also acquired 22 major development sites since 2015.

“We have a clear and scalable value proposition for PBSA and rental housing in Australia”

The joint venture is seeded with a prime development opportunity at a project at Queen Victoria Market in Melbourne which includes around 1,100 PBSA apartments.

“As the leading local operator in the residential for rent sector, we have a clear and scalable value proposition for PBSA and rental housing in Australia,” co-founder Craig Carracher added.

APG head of Asia Pacific Real Estate, Graeme Torre, added that the professionally-managed student accommodation buildings with improved energy efficiency and carbon footprint “support our goals around responsible impact investing”.

“We have had a very successful partnership with the Scape team who have proven themselves
to be capable of developing and managing first class student accommodation assets.”

“This investment allows us to participate in the institutionalisation of the living sector in APAC and support the provision of well-managed, high-quality housing for students,” Ivanhoé Cambridge head of Asia Pacific George Agethen concluded.

“The exposure to this development JV complements our recent investment in Scape Core Program and will further diversify our APAC portfolio with defensive cashflows that are driven by the favourable demographics in the region and the demand for quality education in Australia.”

The partners added that the development of further PBSA in Australia will continue to release pressure from the rental housing market. Australia has been one country where incoming students have been blamed for housing shortages.

In November last year, the Property Council of Australia called on the government to prioritise student housing, including removing taxes like foreign investor fees.

“It’s important that we have a strong pipeline of new PBSA assets in Australia to ensure our vital international education sector can continue to grow, and our CBDs are given a leg-up in their recovery,” Property Council Group executive for policy and advocacy Matthew Kandelaars said.